The 1996–97Edmonton Oilers season was the Oilers' 18thseason in the NHL, and they were coming off a 30–44–8 record, earning 68 points, in the 1995–96 season, failing to qualify for the post-season for the 4th straight season.

The Oilers would have their best season since 1991–92, as they would win 36 games, and earn 81 points, finishing in third place in the Pacific Division, and seventh in the Western Conference, earning their first playoff berth in five years. The main reason for the Oilers' turn-around was their solid goaltending and defensive hockey, allowing 247 goals, which was 57 fewer goals than the previous season.

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Offensively, Doug Weight who lead the club once again in points, earning 82, and a club high 61 assists, while Ryan Smyth would have a breakout season, scoring a team high 39 goals and leading the team in power-play goals with 20. Andrei Kovalenko, acquired in the off-season, would score 32 goals and 59 points, while Jason Arnott would earn 57 points in 67 games. Rookie Mike Grier had 32 points in 79 games and Mariusz Czerkawski finished third on the team in goals with 26. Boris Mironov would anchor the defense, earning 32 points in only 55 games. Todd Marchant led the team in shorthanded goals with 4 and team captain Kelly Buchberger provided the team toughness, earning a club high 159 penalty minutes.

In goal, Curtis Joseph would get the majority of playing time, winning 32 games, while posting a 2.93 GAA and a .907 save percentage, and set a team record with 6 shutouts. Bob Essensa, and despite a strong GAA of 2.83, he would win only 4 games.

The Oilers would face the Central Division winning Dallas Stars in the opening round of the playoffs. After splitting the first 2 games in Dallas, the Oilers returned home for game 3 for their first home playoff game since 1992, and found themselves losing 3–0 with about 4 minutes remaining in the 3rd period. Edmonton would then strike for 3 goals to tie the game, and Kelly Buchberger would provide the overtime heroics, as the Oilers would win the game 4–3 and take a 2–1 series lead. Dallas would tie the series up again in game 4, however, the Oilers would shock the Stars, winning 1–0 in double overtime in the 5th game in Dallas, and return to Edmonton in a position to clinch the series. The Stars would spoil the Oilers party, winning the 6th game 3–2, setting up a game 7 at Reunion Arena in Dallas. The game would be a memorable one, as the score was tied up at 3 as the teams would head into overtime. Todd Marchant would turn out to be the hero, scoring for the Oilers in the 1st overtime, as Edmonton would complete the upset, defeating the Stars in 7 games.

In the 2nd round, Edmonton would face the defending Stanley Cup champions, the Colorado Avalanche, who won the Pacific Division and had 26 more points than the Oilers during the season. The Avalanche would win the opening 2 games easily in Denver, and while the Oilers would rebound to win the 3rd game, the Avs proved to be too much for Edmonton to handle, as they would win the series in 5 games, ending the Oilers season.